Acenas II v. Court of Appeals

G.R. No. 107762 · 1995-08-29 · J. ROMERO, J.: · Primary: Civil; Secondary: Remedial
REITERATION

Facts

1. The Antecedents: Civil Case No. Q-90-6250 originated from a complaint filed by Rodrigo S. Ligon against Evelyn L. Guanzon (also known as Evelyn Lalic or Evelyn Acenas) for the recovery of a sum of money and damages, with a prayer for a writ of attachment. The complaint alleged that Guanzon had obtained various jewelry from Ligon on credit, paying with post-dated checks that subsequently bounced due to insufficient funds and closed bank accounts. Guanzon had reportedly left the country to evade payment. Ligon sought to attach Guanzon's alleged one-half interest in a lot and house covered by Transfer Certificate of Title No. 44209, registered in the name of Alberto S. Acenas, Jr., married to Evelyn Lalic, and a motor vehicle. 2. Procedural History: Despite Evelyn Guanzon having left the country, substituted service of summons was made to her daughter-in-law. Petitioner Alberto S. Acenas II filed a motion for leave to intervene, asserting sole ownership of the property subject to attachment and denying Guanzon any interest therein, as he was not married to her. The trial court denied Acenas's motion to intervene and granted Ligon's prayer for a writ of attachment. Guanzon was declared in default, and Ligon was allowed to present evidence ex-parte. The trial court rendered judgment against Guanzon. Acenas filed a third-party claim, which was also denied. The Court of Appeals subsequently dismissed Acenas's petition for certiorari and prohibition, without prejudice to his right to vindicate his claim in a separate action. 3. The Petition: Petitioner Alberto S. Acenas II filed a petition for review on certiorari with the Supreme Court, seeking to overturn the Court of Appeals' decision and to be allowed to intervene in the underlying civil case. He argued that he has a legal interest in the property sought to be attached, which he claims as his exclusive property, and that intervention is necessary to avoid multiplicity of suits and to have his claim fully adjudicated. The Supreme Court considered whether Acenas's intervention would unduly delay the proceedings or prejudice the original parties, and whether his rights could be fully protected in a separate proceeding, ultimately finding that intervention was warranted in the interest of justice.

Issue(s)

Whether petitioner Alberto S. Acenas II should be allowed to intervene in Civil Case No. Q-90-6250. Whether the substituted service of summons was valid.

Ruling

The petition is GRANTED. The assailed decision of the Court of Appeals is SET ASIDE, and the RTC is ordered to allow petitioner Alberto S. Acenas II to intervene in Civil Case No. Q-90-6250.

Ratio Decidendi

On the issue of intervention: The Supreme Court held that petitioner Acenas should be allowed to intervene. Rule 12, Section 2 of the Rules of Court allows intervention if a person has a legal interest in the matter in litigation, or in the success of either of the parties, or an interest against both, or is so situated as to be adversely affected by a disposition of property in the custody of the court or an officer thereof. While Acenas did not show interest in the checks or jewelry, he demonstrated a legal interest in the attached real property, which was under threat of execution. The Court emphasized that the property in question served as the res that gave the RTC jurisdiction over the case against Evelyn Guanzon. Therefore, the RTC should have been more liberal in allowing Acenas' intervention to avoid multiplicity of suits, to determine if jurisdiction was validly exercised, and to thresh out the real controversy on the merits. This liberality is particularly important in the early stages of a lawsuit, as Acenas' motion was filed before trial. Furthermore, Acenas' claim could not be better threshed out in a separate proceeding as it was interwoven with Ligon's case against Guanzon. Admitting the intervention would avoid multiple suits and lead to a definitive resolution of the issue. On the validity of substituted service: While not the primary focus of the Supreme Court's ruling on intervention, the Court noted that Evelyn Guanzon had already gone abroad when the complaint was filed. The RTC acquired jurisdiction over the res (the property) through the attachment, which allowed for the case to proceed despite Guanzon's absence. The substituted service, though potentially questionable given the circumstances, was made to Guanzon's daughter-in-law at her address. The Court's decision to allow intervention was primarily based on Acenas' claim of ownership over the attached property, which was the basis for the res jurisdiction.

Main Doctrine

A person seeking to intervene in a case must possess a legal interest in the matter in litigation, or in the success of either of the parties, or an interest against both, or be so situated as to be adversely affected by a distribution or other disposition of property in the custody of the court or an officer thereof. The court should be liberal in allowing intervention, especially in the early stages of a lawsuit, to avoid multiplicity of suits and to ensure that the real controversy between the parties is threshed out.

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